Transocean Ltd. (RIG) Stock Moves Down and Here’s Why

Transocean Ltd. (NYSE: RIG) shares fell on Thursday February 2 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, The Dow Jones Industrial Average DJIA, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.

Shares of Transocean Ltd. (NYSE: RIG) were downgraded by analysts at Morgan Stanley in a note to their investors today. With a rating of Underweight on the shares, Transocean Ltd. has a 52-week high of $16.66. The one-year price target of $12.85 is a decrease compared to the opening price of $13.98, resulting a fair amount of other analysts to comment on the company recently. considerable and crucial digressions in the company’s operations, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the initial recommendation.

Shares of Transocean Ltd. (NYSE: RIG) opened at $13.98 yesterday trading between $13.58 and $14.03, and last traded at $13.74, a drop of $0.26 over the previous closing price.

Transocean Ltd. (NYSE: RIG) now has a market cap of 5.02B.

Transocean Ltd. (NYSE: RIG) Average Daily Trading Volume

The stock’s average daily volume is 14,644,400 shares out of a total float 365,278,000 and some 2,227,009 shares crossed the trading desk yesterday, 94 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these have teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.

Transocean Ltd. (NYSE: RIG) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

Trades for Transocean Ltd. (NYSE: RIG) have ranged from $7.67 – 16.660, and the stock now has a 50-day MA of $15.05 and 200-day MA of $11.73. Today’s last price is 17.56%% below the 52 week high of $16.66.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have been successful at growing their earnings at least 25% or more for the past 3 years.

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